Location: Custer County, ID | Metro: Butte County, ID HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 83255 reveals a unique balance between yield and stability, making it an intriguing market for both landlords and small-portfolio investors. To begin, let's consider the yield potential. The Fair Market Rent (FMR) for 2024 stands at $1,010, which is notably higher than the market rent of $756. This discrepancy suggests a significant opportunity for rental income above the average market rate. Furthermore, the median home value in the area is $353,330, indicating a substantial investment cost but also a potential for capital appreciation.
Moving on to stability, the data points towards a somewhat stable but not highly secure market. Approximately 14.2% of the population are renters, which is relatively low compared to typical rental markets. This figure implies that there might be limited demand for rental properties, potentially affecting occupancy rates and tenant turnover. Additionally, the median household income is listed at $70,714, which is a reasonable indicator of the financial health of the residents and their ability to meet rental obligations. However, the absence of data regarding the number of days on market (DOM) makes it challenging to assess the liquidity of the real estate market in this area.
Given these factors, ZIP 83255 does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle ground where the potential for higher rental yields exists, driven by the disparity between FMR and market rents. However, the lower percentage of renters and the lack of DOM data introduce elements of risk and uncertainty. Therefore, this ZIP code could be considered a moderate-risk investment opportunity, offering decent returns while requiring careful management to ensure stable cash flows.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.